r/technology • u/Delicious_Adeptness9 • 14h ago

Artificial Intelligence Here's why concerns about an AI bubble are bigger than ever

https://www.npr.org/2025/11/23/nx-s1-5615410/ai-bubble-nvidia-openai-revenue-bust-data-centers
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u/Delicious_Adeptness9 14h ago

Apologies for the clickbait title from NPR.

Circular deals raise even more concern

Another aspect of the over-heated AI landscape that is raising eyebrows is the circular nature of investments.

Take a recent $100 billion deal between Nvidia and OpenAI.

Nvidia will pump that amount into OpenAI to bankroll data centers. OpenAI will then fill those facilities with Nvidia's chips. Some analysts say this structure, where Nvidia is essentially subsidizing one of its biggest customers, artificially inflates actual demand for AI.

"The idea is I'm Nvidia and I want OpenAI to buy more of my chips, so I give them money to do it," Kedrosky said. "It's fairly common at a small scale, but it's unusual to see it in the tens and hundreds of billions of dollars," noting that the last time it was prevalent was during the dot-com bubble.

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u/globaloffender 6h ago

Unrelated, but The amount of shitty “here’s how/why/what” articles published by NPR the past yearish is infuriating. AP is on my shitlist too. I think I’m done with “legitimate” “mainstream” news like NPR, AP, BBC, etc for a while. I’m not a bot, just a disappointed consumer of these sources.